The size of the Windows partition /dev/sda3 is way more than I need. I'd like to free up about 100-125 GB and move it to the Ubuntu partition /dev/loop0. I expect to be working with databases around 25 GB in size and want to have room to grow.

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This article shows how you can modify the partitioning of your Linux
system with GParted (Gnome Partition Editor) without losing data. This
includes resizing partitions (enlarging and shrinking), moving
partitions on the hard drive, creating and deleting partitions, and
even modifying filesystem types. GParted is a free partition editor
available as a desktop program and also as a Live-CD. It supports the
following filesystems: ext2, ext3, fat16, fat32, hfs, hfs+, jfs,
linux-swap, reiserfs, reiser4, ufs, xfs, and even ntfs (Windows).
Have alook at this